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Navigating The Property Clock

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The property clock is a visual device used by property experts and savvy investors to determine the life cycle of the property market. Those looking to break into the property market should familiarise themselves with this tool as it showcases property regularity and dependability; things that cannot be taken for granted when making an investment decision. The property clock also assists by debunking the age old myth that house prices are always rising in value at the same rate. So what do you need to know about the property clock?

The property clock explained

The peak, or 12 o’clock, identifies when the market is in a prime performance period. As you continue in a clockwise direction, the clock illustrates the process from market high to market low at 6 o’clock. From here, you’ll begin to understand the stages heading back up to peak market performance.

The below reference outlines key investor hot spots throughout Australia, and which part of the property clock they are currently placed in. As you can see, the Australian property market is actually made up of multiple regional property markets, all at different stages on the property clock.

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Strategically, the property clock should be used to determine when to buy investment property and when to sell. When the market is generating high returns at 12 o’clock, it is a good time to sell. When the market hits a low at 6 o’clock it is the time to pick up a property at a great price with scope to increase in value as it makes its way back up to 12 o’clock.

Many investors use the clock as a smaller analysis of their investment and research process that helps to provide clarity on broad market dynamics. Understanding each step on the property clock will help investors anticipate how the market is developing as real-time events occur.

Look beyond the property clock

The direction in which assets travel on the clock only partially depends on broad market developments and conditions. So while a property clock is essential to know and understand, it’s important for investors to identify where individual properties fall on the property cycle and which micro events could have the most impact on the cycle. Successful investors will understand that there are many property cycles for various types of assets, each running for different lengths of time.

The property clock is a coherent tool to guide you towards making the right property purchases at the right time. If you’d like to understand more about the investment opportunities available to you, contact Sally Prowse on
0400 570 051 to determine your objectives and how best to achieve them.